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Academic Leadership: The Online Journal (2003-2012)

Authors

Theresa Quigney

Abstract

Within a framework of trust markets, this study compares expenses, instructional expenses, and revenues per FTE of not-for-profit and for-profit postsecondary institutions using IPEDS data. Median expenses per FTE at not-for-profit institutions were double those at the for-profit institutions. Median revenue beyond instructional expenses increased at the 4-year-and-above level institutions while decreasing at other levels. Percent of revenue allocated to instructional expenses, other expenses, and excess revenue is presented. Surprisingly, 4-year-and-above, not-for-profit institutions generate more excess revenue per FTE than 4-year-and-above for-profit institutions. Implications of the nondistribution constraint for trust markets and the policy implications of these findings are discussed.

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